Some victims from Peachtree City, Fayetteville and Newnan

Former attorney Steven H. Ballard, 53, of McDonough pled guilty today in federal district court to defrauding over a dozen victims in Georgia, Florida and Tennessee in a real estate investment scam, federal officials said.

Ballard collected over $2 million between September 2002 and May 2006 in what officials called a Ponzi scheme.

"He told the victims that he was making 'lucrative' real estate and other investments which were not actually transacted," according to a news release from federal officials. "He often used bogus HUD-1 settlement statements, warranty deeds and sales contracts to reflect non-existent property purchases, while using a portion of the scheme proceeds to repay former victim investors."

While the repayments included investors' principal plus "returns" often exceeding 50 percent of their initial investment, those repayments were all funded with money from new victim investors," federal officials said.

Ballard pled guilty today to one count of wire fraud which encompasses the entire actions taken during the five and a half year scheme, federal officials said. Ballard could receive a maximum sentence of 20 years in prison and a fine ofup to $250,000 plus full restitution to all victims who have not yet been repaid, officials said.

Ballard’s law license was suspended by the State Bar of Georgia in September 2005, and he was disbarred in May 2006.

This case is being investigated by Special Agents of the Federal Bureau of Investigation and the Clayton County District Attorney’s Office, assisted by the Henry County Police Department and the Peachtree City Police Department.

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